Insurance Claims Case Studies

Tens of thousands of childcare professionals have used the Childcare.co.uk insurance scheme. Most people never need to make a claim, but in the event of a serious incident happening, does your insurance really help you?

We have put together some real-life case studies of actual claims made by Childcare.co.uk members.

Having the right level of insurance cover in place is very important.  Does your insurance company provide the level of cover you deserve?

Contract Disputes

Dispute over childcare fees (our insured’s counterclaim circa £650) and the parent’s attempt to recover deposit (claim circa £400). The claim/counterclaim arrangement was purely a timing matter. Scottish jurisdiction. The Court struck out the parent’s claim and found in favour of the insured and debt was eventually paid subsequent to a visit from the Sheriff’s officials.

Insurance paid out £2,482.40

Contract claim for unpaid fees (circa £675) owed to the insured. Insured’s client issued a counterclaim amounting to £1,770. Legal fees were incurred to draft claim and a response to the defence and counterclaim.

Insurance paid out £3,308.39

Criminal

A child under the care of the insured sustained injuries. The Insured was informed by the legal department at the County Council that as the insured was one of the persons who had contact with the child that the Family Court could make a finding against them and the Court could decide that they should be joined to the proceedings. Through legal representation the insured denied that they had anything to with causing the injuries and at a subsequent hearing the Court found that the insured would not be required to play any further role in proceedings.

Insurance paid out £3,540.00

A child under the care of the insured sustained injuries. The case was due to be moved to the High Court due to its nature and complexity. However the Local Authority obtained leave from the Court to withdraw from these proceedings on the basis that, in the light of medical evidence, they are not seeking any findings of fact against any of the parties. Reserve is in anticipation of final costs bill from the representative.

Insurance claim accepted with reserve of £4,000.00

Ofsted Registration Suspension

The insured received a notice of suspension from Ofsted as they believed that children under the care of the insured could be exposed to a risk of harm. This was not due to a complaint from a client but that the authorities became aware of some recent behavioural problems of one of the insured’s own children. Grounds for appeal were drafted by the representative. On receipt of the grounds for appeal Ofsted withdrew the suspension and the matter was closed. Costs may include loss of ordinary pay hence reserve still in place and claim is open.

Insurance paid out £2,199.60 plus further reserve of £7,800.40

The insured was suspended by Ofsted so that they could investigate an incident involving a child under the insured’s care. The incident related to an anonymous allegation that the insured was force feeding a child. The insured denied the allegation and also provided supportive references from a number of parent clients including one from the parent of the child subject of the allegation. There was also a liability element to the claim that was referred to Markel, although the suspension element was dealt with by the legal expenses insurance. The case was sufficiently contentious to require Counsel. The Court hearing extended the suspension partly due to evidence given but also because Ofsted had still not completed their investigation. Further correspondence with Ofsted took place and eventually the suspension was withdrawn. The required involvement of Counsel and delay in investigation by Ofsted, resulting in the extension of the suspension, have contributed to the relatively high cost of this claim.

Insurance paid out £11,749.25

Insured received a notice of decision to cancel their registration from Ofsted. Initial thoughts from the representative were that Ofsted may not have followed the appropriate procedures and to query this with them before appealing or just go straight to the appeal process. The legal opinion was that cancelling their registration was disproportionate. So far grounds for appeal have been drafted and review of the telephone case management hearing. It has now been registered as an appeal to the first tier tribunal and the hearing is scheduled to take place at some point between late February to early April 2020.

Insurance paid out £2,605.20

Licence Cancellation

The claim relates to cancellation of registration due to a complaint regarding the care of a child, breaching minimum standards and providing misleading information. Confirmation was given by the legal representative that prospects existed for avoiding the cancellation of the insured’s registration and grounds for the appeal drafted. Unfortunately the appeal against suspension was unsuccessful and reasonable prospects of success for a further appeal did not exist.

Insurance paid out £6,224.10

Representation at Family Court

The insured received a letter from their county council informing them that as a result of a child collapsing whilst in their care that they should attend the family court with legal representation. Activities required of the representative included:

Attendance at the Advocates Meeting, Attendance at the Case Management Hearing, Representation at a 5 day Fact Finding Hearing, Representation at a 3 day Final Hearing

The judge found that the insured was not culpable for the injuries suffered by the child and Ofsted lifted the suspension and the insured returned to childcare work.

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